Senomyx Could Get Up To $4.6M In Pact With Kraft Foods

WASHINGTON
Dow Jones
December 12, 2005

Senomyx Inc. (SNMX) disclosed Monday that it could receive up to $4.6 million from Kraft Foods Inc. (KFT) under a new three-year development and collaboration agreement between the parties.

The biotechnology company said in a document filed with the Securities and Exchange Commission that it will work with Kraft on the discovery and development of novel flavor modifiers on a co-exclusive basis in the chilled and processed meat product category within North America.

Under the terms of the pact, Kraft, the nation's biggest food company, agreed to pay an initial license fee and incremental discovery and development funding over the three-year period.

In addition, Senomyx is eligible to receive milestone payments upon achievement of specific product discovery and development goals.

The combined total of initial license fees, research funding and milestone payments could reach $4.6 million if all milestones are met.

Upon commercialization, the company will be entitled to royalty payments based on sales of Kraft products containing any flavor modifiers developed under the agreement.

By Chad Clinton, Dow Jones Newswires; 202-862-1349; chad.clinton@dowjones.com

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